The One Dividend Payer I Want to Hold in Any Market

By
A A A

I think it's the most boring business I've ever researched. That's what you want if you're looking for a stock to hold no matter what.

It pays dividends like clockwork. They've increased for 39 years straight -- that goes back to when Nixon was in office. That even includes increases during the Great Recession. The quarterlydividend has risen 154%, in the past 10 years.

Earnings growth isn't going to blow you away. This company isn't going to invent the next iPod. The CEO isn't going to be a rockstar in the business world. In other words, don't expect a lot of flash from this company, which was founded in 1872.

But expect plenty of substance.

Paper company Kimberly-Clark ( KMB ) was the first company to put toilet tissue on a roll. It invented the "disposable handkerchief" -- or what we know as the iconic Kleenex. And it was the first paper company to advertise its brands on national television. Today it's the company behind Huggies, Kotex, and Depend incontinence products.

Like I said, it's boring stuff. But that's the sort of company that does well over time, especially if things get rocky.

Right now, we're seeing $100-plus oil, turmoil in the Middle East and North Africa, concerns about an overheated market, and the continuous angst about government deficits. That's a lot of worry. You might sleep better owning Kimberly-Clarkshares .

You see, not only is it one of the most steadydividend payers around, but theshares hold up well in down markets. Take a look at the stock versus the S&P 500 in the recent bear market ...


Right now the shares are yielding about 4.5%. Normally I don't get too excited over that sort ofyield . But this isn't an ordinary investment.

Action to Take --> You don't buy this stock with the plan to sell it after a month, six months, or even a year. It's the sort of holding you want to buy and forget about, no matter how the market does. Just let it pay you quarter after quarter.

And while nothing in investing is ever guaranteed, those dividends are likely to increase over time, just like they have for the past four decades. At the very least, they'll add up handsomely.

Every share bought just five years ago has paid out $11.65 since, providing a 20% gain on dividends alone. That may not be something to brag about at cocktail parties, but in the bipolar market of the past five years, that steady return... and dividend ... is something to covet.


 
-- Amy Calistri

P.S. I don't know if you've seen this or not, but a Texas man has figured out how to collect thousands of dollars a month in dividend payments alone. Last year he made $41,161 this way. Whether you're on a fixed income or not, I'm sure you could benefit by copying this man's formula for your own use. Here's everything you need to know…

Disclosure: Neither Amy Calistri nor StreetAuthority, LLC hold positions in any securities mentioned in this article.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.



This article appears in: Investing , Investing Ideas

Referenced Stocks: KMB

Amy Calistri

Amy Calistri

More from Amy Calistri:

Related Videos

Stocks

Referenced

83%

Most Active by Volume

71,516,687
  • $15.31 ▼ 0.71%
70,751,657
  • $32 ▲ 6.38%
52,690,101
  • $15.98 ▼ 0.19%
42,003,007
  • $8.57 ▲ 4.51%
38,202,273
  • $123.25 ▼ 0.80%
33,193,564
  • $40.97 ▼ 0.58%
31,456,406
  • $105.52 ▲ 0.40%
30,445,885
  • $5.67 ▼ 4.55%
As of 3/27/2015, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com